The importance of QS & CE
Establishing quantity surveying and cost estimating departments
Q
uantity surveying and estimating are pivotal departments in the construction industry. Many companies either have established quantity surveying/estimating departments or use the services of professional individuals/companies to carry out these activities on their behalf. Companies using these activities tend to produce more accurate estimates and are often more successful in bidding. This contributes to a company’s overall success. It is also observed that some companies comprise individuals who are neither certified estimators nor professional quantity surveyors, but are knowledgeable, competent, and capable of carrying out quality work in this particular field. Many companies, however, generally do not focus enough on the aspect of quantity surveying and estimating. These companies tend to not have in-house quantity surveyors/estimators, and avoid external assistance from other professionals. Consequently, such companies can face heavy financial losses as a result of poor-quality work in the quantity surveying and estimating field. Many years ago, when I was working in the Middle East, I witnessed an incident
occurring over a span of a few years. A newly established construction company with a large office situated in an upscale area of the city had decorated and furnished offices, modern and expensive construction equipment, numerous company departments, etc. However, the company did not believe it was necessary to have a quantity surveying/estimating department, and also chose not to engage itself with any professional in this field. Instead, the company’s quantity surveying/estimating responsibilities were assigned to its construction management and supervisory team. During its early years, the company thrived as a result of being awarded work from its owner as a sole source construction company, without competitive bidding. While the company was successful in building these projects, it was having no success in winning new, major contracts. Approximately three years from the company’s inception, its major projects were completed but due to a lack of awarded work going forward, large layoffs began. Over the next few years, the company worked on small/ medium-sized projects and continued its bidding efforts in the hopes of securing new contracts. Unfortunately, there was
Companies can face heavy financial losses as a result of poorquality work in the quantity surveying and estimating field.
QS Online Cost Consultants Inc. Halifax, Nova Scotia p. 902 405-1504 halifax@qsonlinecostconsultants.com www.qsonlinecostconsultants.com
36 | CONSTRUCTION ECONOMIST | www.ciqs.org | Summer 2019
no success and the company began to face heavy financial losses. It was forced to file for bankruptcy. An internal investigation revealed that the work performed with regards to the estimating and bidding processes was poor due to the fact that the company did not have any professionally qualified or certified quantity surveyors or estimators. The construction management and supervisory team was competent in its discipline, but did not have adequate experience in quantity surveying/estimating. From the above, it is obvious that the company’s management either tried to limit expenses by avoiding hiring appropriately qualified quantity surveyors/ estimators, or it did not understand the importance of the professional Quantity Surveyors/Estimators role. In spite of having all the resources to run a construction company, the company was unable to succeed due to the absence of competent staff that could fulfill the quantity surveying/estimating function. Therefore, in order to succeed in this competitive market, it is essential to use the services of competent, professional, and certified resources for the quantity surveying and estimating disciplines.
About the author Majeed Ahmad (PQS) is a senior cost estimator for CNRL in Calgary, Canada. He has over 35 years of experience in residential, commercial, industrial, institutional, and oil and gas sectors. His experience includes site supervision, project management, cost estimating, and quantity surveying in Canada and the Middle East. He holds a Diploma in Business Management and a Bachelor of Science and Diploma in Civil Engineering.
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